Exempt or Non-Exempt?

Proper employee classification now, may mean avoiding expense in the future.

There are three main categories of employees that are generally not entitled to overtime: administrative, professional and executive. These categories are typically known as exempt, but there may be some blurring of the lines.

Administrative classification require that those employees have decision-making authority and may be involved with contract negotiations. The professional classification are for those employees with advanced degrees or specific training, but only if they are using those skills while on the job. A lawyer driving a forklift should not be classified as exempt. The executive exemption usually is used for management running the company or a particular business unit. These are all fine lines and mis-classifying employees may cost you.

Department of Labor audits usually come on the heals of an employee complaint. If you have misclassified the employee, you may owe back pay for the entire term of that person's employment. In 2006, the Department of Labor collected over $170 million in back wages. In addition to back pay you most likely will have to pay attorney and consulting fees.

Be careful of docking an employee's pay for coming in late, missing a workday or lost company property. When you dock pay you are linking it to the quality of their work. Exempt employees are "guaranteed" regular pay.

If you have questions about proper employee classification, speak with an attorney or business consultant that deals specifically with employment matters; it may help avoid trouble in the future.

Tempe's Limelight shares soar 62% after IPO

Bloomberg News
Jun. 8, 2007 08:34 AM

Shares of Limelight Networks Inc. jumped as much as 62 percent after its initial public offering, as investors bet the company will build a business delivering video for Web sites including ABC.com and Netflix.

Limelight stock rose $7.98 to $22.98 at 11:24 a.m. New York time in Nasdaq Stock Market trading, under the symbol LLNW, after rising as high as $24.33. About 16 million shares were sold yesterday at $15 each, netting the Tempe, Arizona-based company $187.5 million before expenses. Read More at AZCentral

PV lawyer-turned-author to release legal thriller

SCOTTSDALE - An anonymous man limping across Moscow's Red Square changed Brent Ghelfi's life.

The image Ghelfi glimpsed from his hotel window gave the Paradise Valley attorney confidence to follow in the footsteps of other lawyers-turned-author.

The result was Volk's Game, set for release June 12, the same day the writer is scheduled to read and sign his first novel at Poisoned Pen bookstore. Read More at AZCentral

Paychex helps clients get hiring tax credits

(June 7, 2007) — Paychex Inc. introduced Tax Credit Services on Wednesday to help small and medium-sized businesses apply for wage-based tax credits."There is a lack of awareness that these are even available to the smaller and medium-size business owners," said Laura Saxby Lynch, corporate communications director. "And for those who are qualified ..., there's a real tax liability benefit for them."
Wage-based tax credits are incentives for hiring that reduce businesses' state and federal income tax liability. They can be used in the current year or can be held to reduce tax bills in future years.
Paychex customers are screened by the service. They are then contacted and educated about possible benefits.A lot of the program is educational, said Steve Beauchamp, 35, vice president of Paychex product management.
The initial service is free for customers, including the screening and help in obtaining credits. If credits are earned, Paychex will then take 20 percent to 25 percent.
The service has been tested over the last year and has helped hundreds of customers, many who did not know they were eligible, Beauchamp said.The new service determines eligibility for two types of business tax credits: location-based, which benefit businesses that locate and hire people in designated zones; and job creation, which benefit businesses that hire targeted individuals.
Paychex provides human resources services to small- to medium-sized businesses. The Penfield company has about 543,000 clients nationwide. via Rochester Democrat and Chronicle

Arizona Moms Share Ideas

I was gathering some news tonight when I came across a site that I haven't visted before. Being that I am not a working, or for that matter, a "stay at home Mom", I had never visited Arizona Moms, hosted by AZ Central.

If you are a "working", "stay-at-home" or "entrepreneurial" Mom, I suggest you check out the site. Great topics, bulletin boards and blogs.

Dave See Arizona Moms

Regulators OK Aetna plan to buy Phoenix company

U.S. antitrust officials on Wednesday gave the green light to health insurer Aetna Inc.'s plan to acquire Phoenix-based Schaller Anderson Inc. for $535 million.

The deal, announced May 24, would see the 1,800-employee managed-care company keeping its headquarters in Phoenix and becoming part of Aetna's efforts to expand the Medicaid side of its business.

"(The approval) is another milestone that gets us closer to the closing, and we're pleased that it went through," Aetna spokesman Fred Laberge said. "We think there's definite value to the Schaller Anderson name within the Medicaid business."

The deal is expected to close in the third quarter. Both companies have said they do not plan to cut employees as a result of the acquisition.

Whether Schaller Anderson will retain its name or take on a new one has not been decided, Laberge said.

Schaller Anderson was started in 1986 and provides managed services for Medicaid plans. It was recently named one of the fastest-growing inner-city firms by Inc. magazine. via AZCentral.com

US Airways flies at the back of the pack for on-time performance

US Airways Group Inc. ranked last among U.S. airlines in April for on-time performance and delayed flights.

New statistics from the U.S. Department of Transportation showed 63 percent of US Airways' April flights were on time. That ranked the Tempe-based carrier (NYSE:LCC) 20th among the 20 major U.S. carriers. Aloha Airlines was first with 89 percent of its flights on time. Southwest Airlines ranked fourth best with 84 percent of its April flights on time.

JetBlue Airways was next to last with a 64 percent on-time score, according to DOT.

US Airways had a number of flights which were habitually delayed or late in April. That includes flights between Boston and Charlotte (100 percent late), Charlotte and Newark (96 percent late) and Atlanta and Las Vegas (94 percent late).

The airline has struggled with delayed and late flights recently due to issues related to reservation systems integration from the 2005 merger with America West Airlines, problems at its Philadelphia hub and weather challenges. via Phoenix Business Journal